On The Horizon: SEC proposes to extend ‘test-the-waters’ accommodation

ContentsSEC proposes to extend ‘test-the-waters’ accommodation to all issuersComment letter issuedSEC proposes to extend ‘test-the-waters’ accommodation to all issuers
On Feb. 19, the SEC issued a Proposed Rule, Solicitations of Interest Prior to a Registered Public Offering, which would extend the “test-the-waters” accommodation, currently available only to emerging growth companies (EGCs), to all issuers, including investment companies. The proposal would permit non-EGC issuers to communicate with certain investors to gauge interest in a contemplated offering either before or after filing a registration statement for an IPO or other proposed registered offering.